Allowed

Punjab National Bank v. Harvinder Pal Singh Alias Harwinder Pal Singh

DRT13 Sept 2024OA/183/2024

Case brief

AI extract

What is this about?

The Debts Recovery Tribunal allowed the bank's application for recovery of Rs.24.53 lakhs. The court reconsidered the interest rate to 8% p.a. over the claimed 9.75% and ordered a recovery certificate and attachment of properties if dues remain unsatisfied.

What did the court decide?

Defendant to pay Rs.24,53,804.61 with costs and interest @ 8.00% p.a.; Recovery Certificate issued; Authorised sale of mortgaged/personal assets.

Punjab National Bank versus Harvinder Pal Singh Alias… — Banking and Recovery | DRT (2024)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.183/2024

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PRESIDED OVER BYMRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 14.02.2024

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DATE OF DECISION: 13.09.2024

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Punjab National Bank (erstwhile Oriental Bank of Commerce), a body corporate constituted under the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970 having its Head Office at Plot No.4, Sector 10, Dwarka, New Delhi and having one of its branch situated at Punjab National Bank (erstwhile Oriental Bank of Commerce), The Mall, Near D.C. Chowk, Kapurthala, Punjab through its General Power of Attorney Holder, Sh. Ankur Rawat who is presently working as Senior Manager, Punjab National Bank, Circle Sastra, PNB House, Satyanarayan Bazar, Near Natraj Hotel,

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Kapurthala, Punjab who is duly authorized and Principal Officer of the Applicant.

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……..Applicant

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Versus

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Sh. Harvinder Pal Singh @ Harwinder Pal Singh S/o Sh. Raja Singh, R/o VPO Nasirpur, Tehsil Sultanpur Lodhi, District Kapurthala.

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….……Defendant

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Advocates:

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Argued by Sh. Surinder Nath Sharma, Advocate for the applicant Defendant is ex-parte

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FINAL ORDER

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Present Original Application was instituted by the applicant under Section 19 of the Recovery of Debts Due to Banks and Financial Institutions Act, 1993, against the defendant for recovery of Rs.24,53,804.61p (Rupees Twenty Four Lacs Fifty Three Thousand Eight Hundred Four And Paise Sixty One Only). The Original Application has been filed through Sh. Ankur Rawat, Senior Manager o f the applicant, who is competent to institute the Original Application vide

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Power of Attorney dated 04.11.2016, which is Annexure A1 to this OA.

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The brief facts of the OA are that the defendant had approached the applicant for the grant of KCC/OGC Limit of Rs.20.00 Lacs vide Loan application dated 07.05.2015, which is Annexure A2 to this OA. 3. The applicant sanctioned the KCC/OGC Limit of Rs.20.00 Lacs vide Sanction Letter dated 14.05.2015, which is Annexure A3 to this OA and the terms and conditions were duly accepted by the defendant. 4. Defendant had mortgaged his immovable property i.e. total land measuring 34K-17M situated at Village Nasirpur, H.B. No.45, Sub Tehsil Talwandi Chaudhrian, Tehsil Sultanpur Lodhi, District Kapurthala vide Declaration under Section 4(1) along with its Translation and Letter to Joint Sub Registrar dated 14.05.2015, which are Annexures A4, A4-T & A5 to this OA. Documents executed:- Notification dated 04.03.2020, which is Annexure A1A to this OA. Affidavit by Borrower dated 13.05.2015, which is Annexure A6 to this OA; Hypothecation Agreement dated 21.05.2015, which is Annexure A7 to this OA; Balance & Security Confirmation Letters dated 15.05.2018 & 12.05.2021, which are Annexures A8 & A9 to this OA; Notice of Recall of Bank’s dues by Advocate dated 01.11.2023, which is Annexure A10 to this OA and Statements of Account along with Certificate under Bankers Book Evidence Act, which is Annexure A11 to this OA. 5. The loan account became irregular and were classified as NPA and after adjusting debit and credit entries in loan account there was a debit of Rs.24,53,804.61p, which is recoverable and the defendant was served recall notices but they did not repay the outstanding amount, therefore, the applicant requested to accept the application and to issue Recovery Certificate accordingly.

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The defendant was served notices to appear before this Tribunal but no one appeared on behalf of defendant and he is proceeded exparte on 07.08.2024.

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In support of the OA, affidavit of Sh. Ankur Rawat, Senior Manager, Punjab National Bank has been filed. 8. Heard arguments and perused record.

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It was argued by learned counsel that in view of the documentary evidence brought on record which had gone unrebutted, the applicant had proved its case. From the perusal of all the Annexures A1A, A1 to A11 to this OA, it is proved that the defendant approached applicant for availing of the loan facilities which were granted to them and for that they had executed all the relevant documents in favour of the applicant. The defendant failed to pay back the loans as per terms and conditions of the agreement between the parties. Subsequently, account of the defendant was classified as NPA. From the documentary evidence brought on record, it is proved that applicant is entitled to recover a sum of Rs.24,53,804.61 (Rupees Twenty Four Lacs Fifty Three Thousand Eight Hundred Four And Paise Sixty One Only) along with interest from the defendant, jointly and severally, from the date of filing of the present Original Application till realization of the account.

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In so far as pendent elite and future rate of interest is concerned, the applicant in relief clause has claimed interest @9.75%p.a. along with @2% penal interest with half yearly rests in the loan account from 04.02.2024 till the realization.

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The Tribunal is of the considered opinion that sometimes in appropriate cases the prerogative of mercy is the brightest jewel in the crown of the Judge. Keeping in view the facts and circumstances of the instant case including nature of the mortgaged property, undertaking of the defendant, quantum of loan and prevalent market rates of interest which have gone drastically downhill in yester years, while

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exercising the discretion vested in this Tribunal, this Tribunal deems it just and appropriate to grant uniform simple interest @8.00%p.a. in the loan account from the date of filing of the OA till realization of the amount ordered vide this final order. It is ordered accordingly.

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In the result, the application is allowed declaring that the defendant is liable to pay to the applicant a total sum of Rs.24,53,804.61 (Rupees Twenty Four Lacs Fifty Three Thousand Eight Hundred Four And Paise Sixty One Only) jointly and severally, with costs, current and future simple interest @8.00%p.a. in the loan account from the date of filing of OA till the date of realization of the amount. Accordingly, the applicant shall be entitled to recover aforesaid amount from the sale of hypothecated/mortgaged properties of the defendant in execution proceedings if not sold earlier under the provisions of the SARFAESI Act, 2002. If the dues of the applicant still remain unsatisfied, it shall be entitled to recover the same by attachment and sale of personal assets of the defendant. The applicant is at liberty to enforce the claim through due process of law.

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Any other application pending stands disposed of. 13. Issue Recovery Certificate accordingly.

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Parties to appear before Learned Recovery Officer of this Tribunal on 09.10.2024.

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Copy of this order be given dasti to the applicant and be sent to defendant through registered/speed post and this order be also uploaded on the official website of this Tribunal and record be consigned.

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Pronounced by me in the open Tribunal.

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Dated: 13.09.2024

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(MRIDULESH KUMAR SINGH) Presiding Officer, DRT-III, Chandigarh

Punjab National Bank v. Harvinder Pal Singh Alias Harwinder Pal Singh

Case brief

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Punjab National Bank v. Harvinder Pal Singh Alias Harwinder Pal Singh

Case brief

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